May 19, 2016

Market bottom called as mine opens

Market bottom called as mine opens

The re-opening of Central Queensland’s Isaac Plains Mine underlines the solid long-term prospects for the Queensland resources sector said Queensland Premier Annastacia Palaszczuk at yesterday’s official ceremony.

“As the re-opening of Isaac Plains here today in Central Queensland shows, investors still have confidence in Queensland and our resources,” said Queensland, Premier Annastacia Palaszczuk ay the official opening near Moranbah.

“We have new faces, like Stanmore Coal, and new investors who are calling the bottom of the market, stepping up and creating jobs, like the 150 jobs here at Isaac Plains.

“As well, we have major players like QGC and Rio Tinto investing billions in gas and bauxite, commodities where markets are holding better.”

Dr Lynham said the government was aware of sustained lower prices, particularly in coal, and the flow-on effects for regional communities.

“The bright side of the coal market is that the modern world needs steel and it can only be made with coking coal – like the coking coal produced here at Isaac Plains,” he said.

“The hard coking coal price has increased about 20 per cent over the past quarter, on the back of ongoing steel demand,” he said.

“But we also know that we need to nurture the green shoots, with initiatives like our 50 per cent exploration expenditure discount, on top of our ongoing royalties freeze and low payroll tax rates.

“The Coordinator-General’s powers to cut red tape are available to support business, as has happened here at Isaac Plains, with the Carmichael coal mine, rail and port project and at MMG’s Dugald River in the north-west.”

Stanmore Coal’s Isaac Plains East expansion has also been declared a prescribed project.

“This will help Stanmore extend the life of their existing open cut operation to more than 10 years, with further possible expansion to an underground operation,” Dr Lynham said.

“Our government supports the sustainable development of our resources for the jobs and economic development this offers and we will keep working hard to support companies like Stanmore Coal turn their plans into reality.”

Stanmore Coal managing director Nick Jorss (centre) with Natural Resources and Mines Minister Anthony Lynham and Premier-Annastacia Palaszczuk at the official opening-

Stanmore Coal managing director Nick Jorss (centre) with Natural Resources and Mines Minister Anthony Lynham and Premier Annastacia Palaszczuk at the official opening.

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